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2022-02-28-accounts

REGISTERED COMPANY NUMBER: 02060988 (England and Wales) REGISTERED CHARITY NUMBER: 518516

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 28 February 2022 for CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

CHEADLES Chartered Accountants Telegraph House

59 Wolverhampton Road Stafford Staffordshire ST17 4AW

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Contents of the Financial Statements for the Year Ended 28 February 2022

Page
Report of the Trustees 1 to 2
Independent Examiner's Report 3
Statement of Financial Activities 4
Balance Sheet 5
Notes to the Financial Statements 6 to 12
Detailed Statement of Financial Activities 13 to 14

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Report of the Trustees for the Year Ended 28 February 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 28 February 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of Chasewater Light Railway & Museum Company Ltd written in 1986 are as follows:

To promote and to further the education of the public in the history of the railway and general transport heritage of the United Kingdom, with special reference to industrial and light railways to the West Midlands area; by the creation and operation of museums of all types and, in furtherance of these objects but not otherwise, by the creation and operation of railways, tramways or other forms of transport.

Significant activities

The activities of Chasewater Light Railway & Museum Company are to run heritage industrial steam and diesel passenger services throughout the year in accordance with the objectives written in 1986, and to provide a museum containing artefacts from the local railways and other associated transport systems to educate the public. The company also acquires new exhibits from the local area and holds regular special events where various aspects of the "colliery line" are shown. The company hold numerous events during the year on top of the standard running services which include the local community and other charitable associations.

Public benefit

All trustees are provided with the guidance issued by the Charity Commission on public benefit. It is felt that we confirm to the current guidance, this is continually under review to ensure compliance.

FINANCIAL REVIEW

Financial position

The year in question would turn out to be the first 'normal' year at Chasewater post covid. Over the closed period the railway had taken the decision to keep a core team working and qualified to be able to start up with ease once restrictions were lifted, part of this teams work was the rebuild of company loco 3873 'Hollybank no.3'. At the beginning of 2021 the part finished loco was turned out of the workshop to have her steam exams and acceptance back into traffic. The loco worked for a lot of the year and apart from coming into the workshop to have a broken spring replaced it has given sterling service to the railway.

In the July we held a very successful but wet Road/Rail steam event, 5 full size traction engines and rollers visited us along with vintage tractors and steam miniatures.A very successful 40s event was held in August, we had lots of visitors to the site over the 2 day event which had expanded on the previous years event.

The railway played host to the newly restored steam loco Hastings, and early built Hunslet built loco. We also sent one of our industrial diesel locos out on hire and back into industry, Vanguard 'Helen' could be seen working at DB cargo maintenance Stoke right beside the mail line.

The year proved a great success with visitor numbers returning to close to the pre covid figures, the public were so eager to get out to attractions.

Our café went from strength to strength with daily takings rising yet again thanks to the hard work of Becky and her team.

Helped by the decision to run less trains but more profitable the railway had the most successful in its history to date financially. Doing less for more was the new way forward. The use of the railway in training and testing from outside companies has also helped with profitability.

Once again, without the dedicated team of volunteers who work tirelessly week in week out we would not be in the great shape we now find ourselves, I thank you all for your continued support.

Reserves policy

We currently hold ring fenced monies of £30,000 for Asbestos, £8,690 for the cost of building a new carriage shed and £434 for the cost of roof repairs.

Any other reserves will go largely towards the upkeep of the railway.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Page 1

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Report of the Trustees for the Year Ended 28 February 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of new trustees

Constitution as filed with Companies house. Trustee recruitment is done by letter to current board of trustees who will assess the applicant, and should a vacancy be available, the trustees will vote to recruit them. Should a vacancy not be available, the applicant will be notified accordingly and offered an alternative in the interim period. The current trustee structure is outlined in the SMS which is written and authorised by Green Dragon Rail Ltd.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

02060988 (England and Wales)

Registered Charity number 518516

Registered office Chasewater Railway Pool Lane Brownhills West Station Burntwood Walsall WS8 7NL

Trustees D Weeks M E Sealey Mrs D L Sealey M Fellows L Tucker R Thompson

Company Secretary

Independent Examiner CHEADLES Chartered Accountants Telegraph House 59 Wolverhampton Road Stafford Staffordshire ST17 4AW

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

.............................................................................. M E Sealey - Trustee

Page 2

Independent Examiner's Report to the Trustees of Chasewater Light Railway & Museum Company

Independent examiner's report to the trustees of Chasewater Light Railway & Museum Company ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 28 February 2022.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Cheadles Accountants ICAEW CHEADLES Chartered Accountants Telegraph House 59 Wolverhampton Road Stafford Staffordshire ST17 4AW

Date: .............................................

Page 3

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Statement of Financial Activities for the Year Ended 28 February 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Charitable activities
Other trading activities
2
Investment income
3
Other income
Total
EXPENDITURE ON
Charitable activities
Charitable activities
Other
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
Unrestricted
fund
£
10,186
256,875
1,560
28,038
14,479
311,138
253,717
15,397
269,114
42,024
2,067,455
2,109,479
Restricted
funds
£
6,000
-
-
-
-
6,000
-
-
-
6,000
33,125
39,125
28.2.22
Total
funds
£
16,186
256,875
1,560
28,038
14,479
317,138
253,717
15,397
269,114
48,024
2,100,580
2,148,604
28.2.21
Total
funds
£
47,977
127,709
3,151
23,213
28,950
231,000
187,752
22,240
209,992
21,008
2,079,572
2,100,580

The notes form part of these financial statements

Page 4

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Balance Sheet 28 February 2022

Notes
FIXED ASSETS
Tangible assets
8
Heritage assets
9
CURRENT ASSETS
Stocks
10
Debtors
11
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
12
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
13
Unrestricted funds
Restricted funds
TOTAL FUNDS
Unrestricted
fund
£
1,804,649
193,682
1,998,331
22,000
276
107,033
129,309
(18,161)
111,148
2,109,479
2,109,479
Restricted
funds
£
-
-
-
-
-
39,125
39,125
-
39,125
39,125
39,125
28.2.22
Total
funds
£
1,804,649
193,682
1,998,331
22,000
276
146,158
168,434
(18,161)
150,273
2,148,604
2,148,604
2,109,479
39,125
2,148,604
28.2.21
Total
funds
£
1,802,051
193,682
1,995,733
22,000
3,133
88,054
113,187
(8,340)
104,847
2,100,580
2,100,580
2,067,455
33,125
2,100,580

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28 February 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 28 February 2022 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

.............................................

M E Sealey - Trustee

The notes form part of these financial statements

Page 5

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Notes to the Financial Statements for the Year Ended 28 February 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property - 20% on cost and 10% on cost
Plant and machinery - 25% on cost, 10% on cost and not provided
Fixtures and fittings - 25% on cost
Computer equipment - 25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

The Trustees review stock held at the balance sheet date to ensure that only those goods deemed fit for future sales are included.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

2. OTHER TRADING ACTIVITIES

Subscriptions

28.2.22 28.2.21 £ £ 1,560 3,151

continued...

Page 6

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Notes to the Financial Statements - continued for the Year Ended 28 February 2022

3. INVESTMENT INCOME

INVESTMENT INCOME
28.2.22 28.2.21
£ £
Rents received 28,028 23,178
Deposit account interest 10 35
28,038 23,213
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
28.2.22 28.2.21
£ £
Depreciation - owned assets 11,512 9,505
Deficit on disposal of fixed assets 4,817 -

4. NET INCOME/(EXPENDITURE)

5. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 28 February 2022 nor for the year ended 28 February 2021.

Trustees' expenses

The following expenses were reimbursed to trustees during the year: £Nil (2021: £979.89l) - Shop purchases

£982.89 (2021: £72.02) - Loco Maintenance

£249.99 (2021: £224.25) - Subscriptions

£Nil (2021: £113.03) - Track & Station Repairs

£226.78 (2021: £Nil) - Computer Equipment £100.00 (2021: £Nil) - General expenses £255.38 (2021: £Nil) - Repairs £249.95 (2021: £Nil) - Special Events expenditure £212.06 (2021: £Nil) - Tea Room Purchases

2 Trustees (2021: 2 ) were reimbursed during the year.

6. STAFF COSTS

Salaries and Wages - £62,286.85 (2021: £42,245.77)

The average monthly number of employees during the year was as follows:

28.2.22 28.2.21
Tea room 7 7

No employees received emoluments in excess of £60,000.

continued...

Page 7

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Notes to the Financial Statements - continued for the Year Ended 28 February 2022

7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted Restricted Restricted Total
fund funds funds
£ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 47,543 434 47,977
Charitable activities
Charitable activities 127,709 - 127,709
Other trading activities 3,151 - 3,151
Investment income 23,213 - 23,213
Other income 28,950 - 28,950
Total 230,566 434 231,000
EXPENDITURE ON
Charitable activities
Charitable activities 187,753 (1) 187,752
Other 22,240 - 22,240
Total 209,993 (1) 209,992
NET INCOME 20,573 435 21,008
RECONCILIATION OF FUNDS
Total funds brought forward 2,046,882 32,690 2,079,572
TOTAL FUNDS CARRIED FORWARD 2,067,455 33,125 2,100,580
8. TANGIBLE FIXED ASSETS
Improvements
Short to Plant and
leasehold property machinery
£ £ £
COST
At 1 March 2021 1,370,000 42,847 452,758
Additions - 3,466 13,449
Disposals - - (5,322)
At 28 February 2022 1,370,000 46,313 460,885
DEPRECIATION
At 1 March 2021 - 16,223 51,253
Charge for year - 4,021 6,613
Eliminated on disposal - - (2,927)
At 28 February 2022 - 20,244 54,939
NET BOOK VALUE
At 28 February 2022 1,370,000 26,069 405,946
At 28 February 2021 1,370,000 26,624 401,505

continued...

Page 8

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Notes to the Financial Statements - continued for the Year Ended 28 February 2022

8. TANGIBLE FIXED ASSETS - continued

COST
At 1 March 2021
Additions
Disposals
At 28 February 2022
DEPRECIATION
At 1 March 2021
Charge for year
Eliminated on disposal
At 28 February 2022
NET BOOK VALUE
At 28 February 2022
At 28 February 2021
9.
HERITAGE ASSETS
MARKET VALUE
At 1 March 2021 and 28 February 2022
NET BOOK VALUE
At 28 February 2022
At 28 February 2021
Fixtures
and
fittings
£
27,328
-
-
27,328
27,328
-
-
27,328
-
-
Computer
equipment
£
10,266
2,012
(7,599)
4,679
6,344
878
(5,177)
2,045
2,634
3,922
Totals
£
1,903,199
18,927
(12,921)
1,909,205
101,148
11,512
(8,104)
104,556
1,804,649
1,802,051
Total
£
193,682
193,682
193,682

Heritage assets include locomotives, coaches and wagons at an original cost of £46,583 and relics at an original cost of £20,000.

The heritage assets have been revalued by the Trustees at 29th February 2012 at realisable market value. There is an established market in these heritage assets and valuations are based on this market.

Due to the rare nature of these assets it would be misleading to value them on historical cost basis.

10. STOCKS

STOCKS
28.2.22 28.2.21
£ £
Stocks 22,000 22,000

continued...

Page 9

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Notes to the Financial Statements - continued for the Year Ended 28 February 2022

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

VAT
Prepayments
12.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
Pensions payable
VAT
Other creditors
Accrued expenses
13.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Restricted funds
Asbestos
Carriage Shed
Roof repair
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Restricted funds
Carriage Shed
TOTAL FUNDS
At 1.3.21
£
2,067,455
30,001
2,690
434
33,125
2,100,580
Incoming
resources
£
311,138
6,000
317,138
28.2.22
£
-
276
276
28.2.22
£
1
272
177
5,896
5,787
6,028
18,161
Net
movement
in funds
£
42,024
-
6,000
-
6,000
48,024
Resources
expended
£
(269,114)
-
(269,114)
28.2.21
£
1,391
1,742
3,133
28.2.21
£
92
(99)
74
-
3,582
4,691
8,340
At
28.2.22
£
2,109,479
30,001
8,690
434
39,125
2,148,604
Movement
in funds
£
42,024
6,000
48,024

continued...

Page 10

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Notes to the Financial Statements - continued for the Year Ended 28 February 2022

13. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement At
At 1.3.20 in funds 28.2.21
£ £ £
Unrestricted funds
General fund 2,046,882 20,573 2,067,455
Restricted funds
Asbestos 30,000 1 30,001
Carriage Shed 2,690 - 2,690
Roof repair - 434 434
32,690 435 33,125
TOTAL FUNDS 2,079,572 21,008 2,100,580
Comparative net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 230,566 (209,993) 20,573
Restricted funds
Asbestos - 1 1
Roof repair 434 - 434
434 1 435
TOTAL FUNDS 231,000 (209,992) 21,008

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Restricted funds
Asbestos
Carriage Shed
Roof repair
TOTAL FUNDS
At 1.3.20
£
2,046,882
30,000
2,690
-
32,690
2,079,572
Net
movement
in funds
£
62,597
1
6,000
434
6,435
69,032
At
28.2.22
£
2,109,479
30,001
8,690
434
39,125
2,148,604

continued...

Page 11

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Notes to the Financial Statements - continued for the Year Ended 28 February 2022

13. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Asbestos
Carriage Shed
Roof repair
TOTAL FUNDS
Incoming
resources
£
541,704
-
6,000
434
6,434
548,138
Resources
Movement
expended
in funds
£
£
(479,107)
62,597
1
1
-
6,000
-
434
1
6,435
(479,106)
69,032
Resources
Movement
expended
in funds
£
£
(479,107)
62,597
1
1
-
6,000
-
434
1
6,435
(479,106)
69,032
6,435
69,032

14. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 28 February 2022.

15. RESTRICTED FUNDS

The following restricted funds are in place during the year:

Funds raised for the engine Asbestos. This money is to be used on the upkeep of this engine only. £30,000,000 of this fund is still in place at the year end.

This amount is currently being kept in the savings account.

Donations received for the cost of building a new carriage shed. £8,690.27 of this fund is still in place at the year end. This amount is currently in a separate savings accounts.

Donations received for the cost of roof repair. £434.00 of this fund is still in place at the year end. This amount is held in the current account.

Page 12

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

for the Year Ended 28 February 2022

Detailed Statement of Financial Activities

28.2.22 28.2.21
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Gifts (2) (1)
Donations 16,188 47,978
16,186 47,977
Other trading activities
Subscriptions 1,560 3,151
Investment income
Rents received 28,028 23,178
Deposit account interest 10 35
28,038 23,213
Charitable activities
Train Operating Income 47,749 3,185
Shop Income 17,276 7,339
Special Events Income 33,961 14,378
Tea room sales 157,889 102,807
256,875 127,709
Other income
Government grants 14,479 28,950
Total incoming resources 317,138 231,000
EXPENDITURE
Charitable activities
Rates and water 1,132 2,769
Insurance 14,564 10,644
Light and heat 17,998 13,023
Repairs & General maintenance 35,433 30,724
Subscriptions 2,848 6,000
Telephone 3,989 4,894
Sundries 4,040 7,436
Shop Expenditure 11,116 8,778
Special Events Expenditure 7,469 957
Tea Room expenditure 51,710 36,105
Stock movement - 8,000
Loco Maintenance 15,439 11,270
Publicity and advertising 709 384
Plant hire 7,523 4,300
Tea room wages 61,872 42,246
Pension 571 222
236,413 187,752

Support costs

This page does not form part of the statutory financial statements

Page 13

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Detailed Statement of Financial Activities

for the Year Ended 28 February 2022

28.2.22 28.2.21
£ £
Support costs
Management
Improvements to property 4,021 3,616
Plant and machinery 6,613 4,581
Computer equipment 878 1,307
Loss on sale of tangible fixed assets 4,817 -
16,329 9,504
Governance costs
Accountancy fees 4,000 3,900
Administrative expenses 7,678 5,620
Bank charges 4,694 3,216
16,372 12,736
Total resources expended 269,114 209,992
Net income 48,024 21,008

This page does not form part of the statutory financial statements

Page 14